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    Dignos V CA G.R. No. L-59266 February 29, 1988

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    Rhoma Arciaga
    1. The deed of sale between Dignos spouses and Jabil was an absolute deed of sale, not a contract to sell, as there were no provisions reserving title to the vendors or allowing unilateral rescission for non-payment. 2. All elements of a valid contract of sale were present - consent, determinate subject matter, and price certain. Ownership was transferred when possession was delivered, allowing Jabil to construct on the land. 3. There was no valid rescission of the sale, as rescission of real rights requires a public document, and a slight delay in payment is not sufficient grounds when time is not of the essence. The court ruled in favor of Jabil.

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    Dignos V CA G.R. No. L-59266 February 29, 1988

    Uploaded by

    Rhoma Arciaga
    434 views2 pages
    1. The deed of sale between Dignos spouses and Jabil was an absolute deed of sale, not a contract to sell, as there were no provisions reserving title to the vendors or allowing unilateral rescission for non-payment. 2. All elements of a valid contract of sale were present - consent, determinate subject matter, and price certain. Ownership was transferred when possession was delivered, allowing Jabil to construct on the land. 3. There was no valid rescission of the sale, as rescission of real rights requires a public document, and a slight delay in payment is not sufficient grounds when time is not of the essence. The court ruled in favor of Jabil.

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    Deed of Conditional Sale; Elements of Sale; When Ownership is Transferred

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    1. The deed of sale between Dignos spouses and Jabil was an absolute deed of sale, not a contract to sell, as there were no provisions reserving title to the vendors or allowing unilateral rescission for non-payment. 2. All elements of a valid contract of sale were present - consent, determinate subject matter, and price certain. Ownership was transferred when possession was delivered, allowing Jabil to construct on the land. 3. There was no valid rescission of the sale, as rescission of real rights requires a public document, and a slight delay in payment is not sufficient grounds when time is not of the essence. The court ruled in favor of Jabil.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    434 views2 pages

    Dignos V CA G.R. No. L-59266 February 29, 1988

    Uploaded by

    Rhoma Arciaga
    1. The deed of sale between Dignos spouses and Jabil was an absolute deed of sale, not a contract to sell, as there were no provisions reserving title to the vendors or allowing unilateral rescission for non-payment. 2. All elements of a valid contract of sale were present - consent, determinate subject matter, and price certain. Ownership was transferred when possession was delivered, allowing Jabil to construct on the land. 3. There was no valid rescission of the sale, as rescission of real rights requires a public document, and a slight delay in payment is not sufficient grounds when time is not of the essence. The court ruled in favor of Jabil.

    Copyright:

    © All Rights Reserved
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    of 2

    1. DIGNOS V.

    CA
    G.R. No. L-59266. February 29, 1988

    Parties:
    • Petitioners - Silvestre Dignos and Isabel Lumungsod
    • Respondents – CA and Atilano Jabil

    Doctrine:
    • Deed of Conditional Sale considered absolute when there is no provision that
    (1) title is reserved to the vendor or
    (2) unilaterally giving the vendor the right to rescind contract upon failure of the buyer to pay.
    • Elements of sale
    (1) Consent or meeting of the minds
    (2) Determinate subject matter
    (2) Price certain in money or its equivalent
    • Ownership is transferred by delivery of the thing sold (Art. 1477)
    • Where time is not of the essence of the agreement, a slight delay on the part of one party in the
    performance of his obligation is not a sufficient ground for the rescission of the agreement

    Facts:
    • On June 7, 1965, Dignos spouses sold a parcel of land in Lapu-Lapu City to Atilano Jabil for
    P28,000 payable in two installments, 12K in cash, 12K for the assumption of indebtedness with
    the First Insual Bank of Cebu, 4K cash on or before September 15, 1965.
    • Jabil constructed three beach resorts in the land on March to September 1965.
    • On November 25, 1965, Dignos spouses sold the same land to Cabigas spouses for P35,000. Deed
    of absolute sale was registered.
    • Upon notice of the second sale, Jabil filed a complaint.
    • Dignos claimed that the sale to Jabil was subject to 2 positive suspensive conditions
    o Assumption of indebtedness
    o Payment of the balance of 4K – only made on mid-October
    • CFI Cebu – sale to Cabigas spouses void; sale to Jabil valid
    • CA – same ruling xcp that reimbursement for the payment of fence was not to be paid to Dignos
    spouses

    Issues:
    1. WON subject contract is a deed of absolute sale or a contract to sell
    2. WON there was valid rescission thereof

    Held:
    1. Deed of absolute sale
    a. It has been held that a deed of sale is absolute in nature although denominated as a "Deed
    of Conditional Sale" where nowhere in the contract in question is a proviso or stipulation to
    the effect that title to the property sold is reserved in the vendor until full payment of the
    purchase price, nor is there a stipulation giving the vendor the right to unilaterally rescind
    the contract the moment the vendee fails to pay within a fixed period (Taguba v. Vda. de
    Leon, 132 SCRA 722; Luzon Brokerage Co., Inc. v. Maritime Building Co., Inc., 86 SCRA 305).
    A careful examination of the contract shows that there is no such stipulation reserving
    the title of the property on the vendors nor does it give them the right to unilaterally rescind
    the contract upon non-payment of the balance thereof within a fixed period.
    b. All the elements of a valid contract of sale under Art. 1458 was present.
    c. As a general rule, ownership is transferred by delivery, whether actual or constructive, of the
    thing sold. Dignos spouses delivered the possession of the land so Jabil was able to construct
    beach resorts. The acts of petitioners contemporaneous with the contract clearly show that
    an absolute deed of sale was intended.

    2. No, there was no rescission of sale


    a. Under Article 1358 of the Civil Code, it is required that acts and contracts which have for
    their object the extinguishment of real rights over immovable property must appear in a
    public document.
    It is undisputed that petitioners never notified private respondents Jabil by notarial act
    that they were rescinding the contract, and neither did they file a suit in court to rescind the
    sale.
    b. "where time is not of the essence of the agreement, a slight delay on the part of one party in
    the performance of his obligation is not a sufficient ground for the rescission of the
    agreement" (Taguba v. Vda. de Leon, supra).
    Considering that private respondent has only a balance of P4,000.00 and was delayed in
    payment only for one month, equity and justice mandate as in the aforecited case that Jabil
    be given an additional period within which to complete payment of the purchase price.

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